Stock Sectors React to New Fed Chair Yellen

Markets rallied sharply as Fed Chair Janet Yellen calls for status quo with regard to monetary policy, but market strength is not a game-changer.

NEW YORK (TheStreet) -- Traders and investors liked the overall tone of the first Congressional testimony by the new Federal Reserve Chair Janet Yellen. The doves wanted assurances that the policies in place would continue. That message was heard loud and clear.

Industrial Select Sector SPDR (XLI)($50.71) did not close above my semiannual pivot at $50.88, after trading as high as $50.91 in reaction to Yellen. This implies industrials may lag with a status quo Fed.

Consumer Discretionary Select Sector SPDR (XLY) ($64.52) needed to close above my semiannual pivot at $65.13 to be an indication that consumer discretionary spending would be helped by a Yellen Fed.

Energy Select Sector SPDR (XLE) ($84.74) which is above its 200-day SMA at $83.52. A close Friday below its five-week MMA at $85.28 will continue to reflect continued weak demand for energy and oil-based products.

The mixed bag of price actions among these ETFs suggests that Yellen's testimony was not game-changing.

The major averages posted significant gains on Tuesday. As a result, it becomes more likely that the five major averages will avoid confirming cycle highs at least for this week. However, the question is: will new all-time or multiyear highs be set over the weeks ahead?